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HomeMy WebLinkAbout2002-01-08 Business and Economic Development Committee Minutes ' , BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE , JANUARY 8, 2002 Minutes � ' Councilors Present: Rohman, Nealley, Farrington, Tremble, Baldacci Staff Present: Barrett, Daniels, Heitmann, Martzial, McKay, Dyer, Weber, Ring, , D'Errico, Bates 1. Consent Agenda ' A motion was made and seconded for passage of items 1 a. and lb. , a. Ratification of Community Development Residential Loan Approval — 45 Fruit , Street — April Bryant —Terms and Conditions As Approved at Full Council Session. b. Approval of Sale — 30 South Park Street � 3. November Passenger Statistics -- Airport Daniels reviewed the statistics with the Committee noting that November's numbers ' indicate a 15.9% decrease in passenger from November of 2000. Year to date is ' down only 3.9%. In evaluating other airports in the region, they are experiencing significant decreases. Looking at the numbers by airlines, Delta leads by a 34.4% increase over the previous year; American, PanAm and US Airways have seen a ' decrease. The average daily capacity is a 9.1% decrease over the previous year. Looking at the daily sold and unsold seats, 43% in November of 2001 as opposed to 39% in November of 2000. Delta's passenger load is 63.4; American 62.8; PanAm ' at 30.7°/a; US Airways at 61.2%. Year to date jet capacity shows 33% with turbo at 66%. Daniels continued with review of December's numbers which show a 4% increase in ' monthly passengers over December of 2000. By airline, Delta at 54.8%, American 19.6% (both are increases), while PanAm and US showed a decrease. There was a ' 4.9% decrease in average daily capacity. Average daily sold against average daily unsold: in December of 1999 40% as opposed to 46% unsold in December of 2000. , Passenger loads show Delta at 62.7%, American 78.7%, PanAm at 52% and US at 37.5%. Delta continues to lead the way in the market share at 41.4%. Year to date capacity showed jet service increase in December at 38% and turbo capacity at ' 62%. A full evaluation of last year's numbers will be on the Committee's next agenda. � ' ' ' Rohman suggested it might be helpful to have statistics from January through , September and then January through December because the September, October, November figures were unbalanced. Barrett noted the problem of ComAir being on strike during that time. He said that being down only slightly last year was amazing ' in consideration of September 11 when the airport was closed for several days and ComAir being on strike for three months, loosing approximately 25,000 during that time period. ' Daniels provided information on the estimated increase in cost for additional security at BIA. On an annual basis, the estimate is $228,000 and a one-time cost to , purchase equipment to handle fingerprinting, reconfiguration of the parking lot, parking lot signage, cost of additional security screening hours. The total additional , cost is $321,550, $228,000 of that would be an additional annual cost associated with new security measures. Daniels will be meeting with airport staff to prepare an application for Federal reimbursement. The application is due ]anuary 18th. Barrett ' felt it will be a one-time reimbursement but there is a proposal underway to federalize the screening process. After one year, the federal government will allow up to four-five airports to go back to contracting for security but there is no ' provision for an airport to provide their own security. Tremble asked if screening costs were split between the airport and the airlines. Barrett said it is built into the overall costs. A screening charge is recovered based on each flight. Tremble asked ' if the $59,400 could be recovered. Barrett said those contracts were in place prior to the requirements for additional screening so could not be recovered not until the contracts are renegotiated. ' Baldacci suggested a meeting be held in February to update/integrate the marketing ' program in terms of the Airport. Daniels said he had started on the issue today. 2. Recommendation to Accept Report of the Special Committee on the , Future of the Bangor Auditorium A motion was made and seconded to recommend passage by the full Ciry Council. ' StafF was also authorized to continue to work towards its implementation. 3. Resolve —AfFrming the Commitment of the City of Bangor to Renovate ' the Current Auditorium and Civic Center In September of 2000, the Council adopted a resolve that basically authorized staff , to look at replacing the auditorium/civic center to see if there was support for the concept to proceed as well as identifying potential funding mechanisms. As a part of that Resolve, it required staff to report back to the full Council at its first meeting , in January of 2001 on the progress so that the Council can make a judgement as to whether it feels this effort should be continued. The draft Resolve would indicate ' there is support to replace the auditorium/civic center, that the City has made initial , ' positive steps toward trying to find a funding mechanism, and that the City will ' continue to try to put everything together to replace the structures. The deadline ' date of December 31, 2004 is still in place to have a plan and funding mechanism in place or the Ciry will close the auditorium. September 2002 is the next time deadline where the Council would determine if they want to continue the process or not. , A motion was made and seconded to recommend approval of the Resolve that will go to the full Council. , 4. Kobritr Building RFP This item was referred to the Committee by the Strategic Issues Committee. The ' Business and Economic Development Committee recommended that staff proceed with issuing an RFP. It also requested that certain revisions be made in the RFP to ' address some of the questions which were presented to the Strategic Issues Committee. In particular, the Committee recommended that the RFP allow for either , sale or lease of the property, eliminate any indication that might lead a proposer to believe that the City will participate financially in the redevelopment of the property, and emphasize but not limit uses for the property to those contemplated in our , riverfront redevelopment plans. The Committee also recommended that parking be provided for any redevelopment through the planned public parking system designed to serve the waterfront, Public financing incentives were discussed at Strategic Issues ' Committee. Baldacci said he was willing to issue an RFP without discussing the public financing issue but he did want it clear that he did not support public financing for the project. , Regarding the amphitheater, McKay indicated that the City Solicitor and City Engineer � have met with the DEP recently regarding permitting and it has not yet been decided if that location can be permitted. The Hutchins' family feels that the Kobritz building needs to be removed to eliminate adverse impacts upon the amphitheater. , Barrett suggested the Committee make a decision on whether or not to issue the RFP. Once that decision is made, the RFP could be held for a period of time. Regarding the transportation funds, he said the City can either tear down the , building and straighten the road or, if the building remains, make other transportation improvements on Railroad Street. Ring said the Federal Government ' will expect some work to be done this calendar year. The earmarked $563,000 is for the realignment of Railroad Street and relocation of the railroad track. If the Committee decides to issue an RFP, Barrett indicated the City Engineer would start ' working on alternate ideas for Railroad Street. If the amphitheater needs to be moved and the Kobritr building is no longer compatible, then the building can be demolished. One other alternative is to expand the project up Front Street and out ' Railroad Street. The Ciry Manager expressed concern about losing the federal funds or becoming gridlocked. Baldacci agreed, and asked what the time line would be , , 1 ' with issuing a RFP. Barrett said two months. Weber talked about the upcoming Folk , Festival and that the building should not be torn down during that time. Rohman felt it could be worked around, as the Festival will be in the area where currently there are piles of dirt. Farrington feels the City needs to know if there is an interest, and ' has everything to gain and nothing to loose by issuing the RFP. Rohman agreed to go ahead with the issuance with the only reservation of not knowing how much land will be required for the amphitheater. Tremble agreed to issue with RFP but said that , the City should not be in the leasing business. Nealley made the motion to issue the RFP and was seconded by Baldacci. Rohman voted for the issuance but did express concern about the timeframe. The Order will appear on the January 14th Council , agenda. 5. Discussion of Use of BIA Commercial/Industrial Park Land for Community ' Service Organization ' This is a request from a local developer for an option on property in the BIA Commercial/Industrial Park for potential use in response to the Penquis Cap RFP for new office, daycare, and garage space. Bob Baldacci has approached the Economic ' Development Department and requested an option on a lot in this subdivision. The Committee expressed a strong preference to keep the offices of Penquis Cap located in the downtown area, and the Committee indicated a willingness to consider the � use of some of the property in this industrial park should a downtown location not be feasible. After reviewing the various properties that are available in this industrial park, staff has proposed two potential locations for consideration subject, of course, ' to the preference indicated above and recognizing that a zone change may be required to accommodate the various uses requested by Penquis Cap. ' Tremble asked about the B-13 parcel in which Penquis Cap has expressed interest. Farrington asked about the taxability of the development. A tax payment would be ' made in lieu of taxes. Penquis Cap would be leasing from an entity which would develop the space. Nealley asked the number of employees and McKay said 123 at the existing Harlow Street site. The cost factor will be substantially less at the ' Airport for a single story building with surface parking and garage and daycare facility. On the B-13, it is just over an acre which would require a multi-story structure as well as parking structure, if they provide 250 parking spaces. If not, , they would lease from the City in the parking garage. Tremble said that Penquis realizes the benefit of staying downtown but are currently paying a high lease payment. Baldacci did not participate due to a conflict. , McKay suggested the Committee prepare a letter to Bob Baldacci to include in his proposal package to Penquis indicating the City will consider use of land at the , airport and Parcel B-13 but prefers the downtown area. The proposal would come back to the City for approval for development. It also would require a zone change. ' Nealley suggested also looking at the Curve Street area for the additional facilities. 1 ' Barrett said that staff could communicate to Penquis that the Council's strong , preference is to have them remain downtown. As the developers move fonvard, he also suggested the City be in contact with them regarding an incentive to make a ' downtown location more competitive. Barrett will discuss this with the full Council in a workshop session on ]anuary 14rn 6. Executive Session — Development Proposal — Carl Snowe Request, Lot 1A ' BIA Commercial/Industrial Park. ' A motion was made and seconded to go into executive session. 7. Executive Session — Union Place Acquisition Negotiations ' A motion was made and seconded to go into executive session. ' 8. Discussion of Proposal to Freeze Downtown Property Values Baldacci asked about giving downtown property a long-term timeline to consider , investments and upgrades on their property. Under State Constitution, Barrett said , that a "freeze" of downtown property values is not permissible. The Council has asked for an update on the most recent review of downtown vacancies, particularly relating to upper floor issues. The Ciry Assessor has been doing an analysis on the � downtown and will be presenting his preliminary results on assessed values in the downtown at an upcoming Finance Committee. He is looking at making some downward adjustments to some properties in the downtown in the 5-7% range. He ' is factoring in the impact of not having available parking. Staff is also looking, per McKay's suggestion, at the concept of putting portions of the downtown into a TIF District, which would set up an automatic mechanism that individuals could make ' use of but does complicate negotiations on a property by property basis. Barrett said the City has never turned down a request for a downtown TIF on an individual development project. Baldacci felt that further discussion on the fasade issue and ' TIF District and perhaps pursuing it legislatively in terms of building code. Barrett indicated that is already in the works. Rohman said that in Portland's arts district if , a building is renovated to meet one of the needs of that district the City for a period of time caps off the value of that building before the renovations took place. Barrett said you would appropriate the new revenue back to the properly. Barrett said it , could be pursued but would require a building condition survey. Baldacci suggested doing something in partnership with Bangor Savings Bank on a faGade loan whereby they administer the program and the City's subsidizes the interest rate. Bates ' indicated there are probably SO downtown buildings with serious faSade issues. Barrett said staff will put together a resolve to include all of the ideas mentioned. It will then come back to the Business and Economic Development Committee prior to ' sending it to full Council. , , 1 ' 9. Discussion of Establishing Development Districts for the Mall and the , Broadway Shopping Area Barrett said that Council passed a resolve attempting to balance development and ' environmental protection in the Mall area. Many of the actions will require close coordination with property owners in the area. Staff will be setting up a meeting with property owners in the Mall area but have been waiting on DEP, which is in the , process of completing a report on water quality issues in the Penjajawoc Stream that should have been received by the City three months ago. Staff thought it would be a good basis for bringing the affected parties together. Baldacci felt that ' this approach could be taken in all districts of the City to get property owners working together to improve their district. Barrett agreed that the development and environmental issues in the Mall area are the type of issues that can organize a ' varied group of people around. Unlike the downtown area, the Mall area property is not all local ownership. The Broadway Shopping area is more difficult because of its ' disparate nature and would require e�ensive staff commitment. Baldacci would like to see a public meeting with properry owners in the Broadway Shopping area. Rohman suggested the Broadway Shopping area be placed on an upcoming agenda. ' Baldacci suggested the Downtown District be placed on the ne� agenda. Committee adjourned. ' ' , ' ' , ' ' ' '